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Oshkosh (OSK) Q3 Earnings Miss, Sales Up Marginally Y/Y
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Oshkosh Corporation (OSK - Free Report) reported third-quarter adjusted earnings of $1 per share, missing the Zacks Consensus Estimate of $1.15. The underperformance can be attributed to lower-than-expected sales and earnings across Defense, Fire & Emergency and Commercial segments. The bottom line also came down nearly 5% from $1.05 recorded in the year-ago period.
In the quarter under review, consolidated net sales climbed 0.2% year over year to $2,067 million. The top line, however, lagged the Zacks Consensus Estimate of $2,141 million.
Oshkosh Corporation Price, Consensus and EPS Surprise
Access Equipment: The segment’s net sales rose 22.7% year over year to $1,038 million on improved pricing actions and sales volume in North America. The metric crossed the consensus estimate of $1,030 million.
Operating income skyrocketed 268.7% to $113.2 million (accounting for 10.9% of sales) owing to higher pricing, higher sales volume and lower product liability costs. The metric topped the Zacks Consensus Estimate of $89 million.
Defense: The segment’s net revenues fell 20.2% year over year to $518.7 million, led by lower Joint Light Tactical Vehicle program volume driven by supply chain disruptions and lower customer demand. The metric also fell short of the Zacks Consensus Estimate of $574 million.
The operating income plunged 95.4% from the prior-year figure to $2.3 million (0.4% of sales). The decline was due to lower sales volume, unfavorable cumulative catch-up adjustments of $15.4 million on program margins and adverse product mix. The metric significantly lagged the Zacks Consensus Estimate of $28.58 million.
Fire & Emergency: The segment’s revenues totaled $247.2 million, decreasing 26.8% year over year mainly due to lower fire truck deliveries as parts shortage hindered production. The metric also missed the Zacks Consensus Estimate of $299 million.
The segment’s operating income plummeted 59.3% year over year to $19.2 million (7.8% of sales) amid commodity inflation and dismal sales. The metric also missed the Zacks Consensus Estimate of $26.47 million.
Commercial: The segment’s net sales increased 13.1% from the year-ago figure to $264.5 million on the back of higher pricing. Yet the metric missed the Zacks Consensus Estimate of $270 million.
The segment’s operating profit declined 12.1% to $9.4 million (3.6% of sales), largely due to higher material costs and production inefficiencies. The metric also missed the Zacks Consensus Estimate of $17.94 million.
Financials, Dividend
Oshkosh had cash and cash equivalents of $474.8 million on Sep 30. The company recorded a long-term debt of $594.8 million, reducing from $819 million as of Dec 31, 2021.
Oshkosh declared a quarterly cash dividend of 37 cents per share, to be paid out on Nov 28, 2022, to shareholders on record as of Nov 14, 2022.
Outlook Reaffirmed
Taking into account the supply chain snafus and increasing inflationary pressure, Oshkosh has maintained its revenue and EPS projections for fiscal 2022. The company estimates its EPS to be around $3.50. Revenues are anticipated to be approximately $8.3 billion.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.6% upward over the past 30 days.
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Oshkosh (OSK) Q3 Earnings Miss, Sales Up Marginally Y/Y
Oshkosh Corporation (OSK - Free Report) reported third-quarter adjusted earnings of $1 per share, missing the Zacks Consensus Estimate of $1.15. The underperformance can be attributed to lower-than-expected sales and earnings across Defense, Fire & Emergency and Commercial segments. The bottom line also came down nearly 5% from $1.05 recorded in the year-ago period.
In the quarter under review, consolidated net sales climbed 0.2% year over year to $2,067 million. The top line, however, lagged the Zacks Consensus Estimate of $2,141 million.
Oshkosh Corporation Price, Consensus and EPS Surprise
Oshkosh Corporation price-consensus-eps-surprise-chart | Oshkosh Corporation Quote
Segmental Details
Access Equipment: The segment’s net sales rose 22.7% year over year to $1,038 million on improved pricing actions and sales volume in North America. The metric crossed the consensus estimate of $1,030 million.
Operating income skyrocketed 268.7% to $113.2 million (accounting for 10.9% of sales) owing to higher pricing, higher sales volume and lower product liability costs. The metric topped the Zacks Consensus Estimate of $89 million.
Defense: The segment’s net revenues fell 20.2% year over year to $518.7 million, led by lower Joint Light Tactical Vehicle program volume driven by supply chain disruptions and lower customer demand. The metric also fell short of the Zacks Consensus Estimate of $574 million.
The operating income plunged 95.4% from the prior-year figure to $2.3 million (0.4% of sales). The decline was due to lower sales volume, unfavorable cumulative catch-up adjustments of $15.4 million on program margins and adverse product mix. The metric significantly lagged the Zacks Consensus Estimate of $28.58 million.
Fire & Emergency: The segment’s revenues totaled $247.2 million, decreasing 26.8% year over year mainly due to lower fire truck deliveries as parts shortage hindered production. The metric also missed the Zacks Consensus Estimate of $299 million.
The segment’s operating income plummeted 59.3% year over year to $19.2 million (7.8% of sales) amid commodity inflation and dismal sales. The metric also missed the Zacks Consensus Estimate of $26.47 million.
Commercial: The segment’s net sales increased 13.1% from the year-ago figure to $264.5 million on the back of higher pricing. Yet the metric missed the Zacks Consensus Estimate of $270 million.
The segment’s operating profit declined 12.1% to $9.4 million (3.6% of sales), largely due to higher material costs and production inefficiencies. The metric also missed the Zacks Consensus Estimate of $17.94 million.
Financials, Dividend
Oshkosh had cash and cash equivalents of $474.8 million on Sep 30. The company recorded a long-term debt of $594.8 million, reducing from $819 million as of Dec 31, 2021.
Oshkosh declared a quarterly cash dividend of 37 cents per share, to be paid out on Nov 28, 2022, to shareholders on record as of Nov 14, 2022.
Outlook Reaffirmed
Taking into account the supply chain snafus and increasing inflationary pressure, Oshkosh has maintained its revenue and EPS projections for fiscal 2022. The company estimates its EPS to be around $3.50. Revenues are anticipated to be approximately $8.3 billion.
Zacks Rank & Key Picks
OSK currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.6% upward over the past 30 days.